Introduction
Since 2001, the business world has weathered scandal after scandal. Again many ethical problems had aroud people’s attention again. Is business ethic? Why is business ethics important? How to improve ethics in business world? According to Enron’哲学方法论s ca, I will focus on the business ethic problem and discuss it in this essay.
What happened in Enron?秋天的画图片大全
According to the ca of Skilling vs. United States in the Supreme Court of United States, as a big energy trader in the world, Enron ranked as the venth revenue grossing company in the United States.
Jeffery Skilling, a long-time chief executive officer of Enron, resigned in August 2001. Less than four months later, Enron crashed into bankruptcy, and its stock plummeted in value. After an investigation through which uncovered an elaborate conspiracy to prop up Enron’s stock prices by overstating the company’s financial well-being, the U.S. Federal Governme
nt procuted dozens of Enron employees who participated in the scheme include Skilling and two main executives in Enron. Count 1 of the indictment charged Skilling with, inter alia, conspiracy to commit “honest-rvices” wire fraud, by depriving Enron and its shareholders of the intangible right of his honest rvices. Skilling was also charged with over 25 substantive counts of curities fraud, wire fraud, making fal reprentations to Enron’s auditors, and insider trading. [1] (SUPREME COURT OF THE UNITED STATES, p1)
Justices’ decision and honest-rvice statute
Skilling appealed the decision which was made by the court and raid two questions after the voir dire in 2006. First, he felt that he acquired an unfair trial under pretrial publicity and community prejudice. Second, he asrted that it is improperly for jury to convict him conspiracy to commit honest-rvices wire fraud.
According to the jury’s conviction, Jeffery Skilling committed “honest-rvice” wire fraud. However, the ca express: “in proscribing fraudulent deprivations of the intangible righ
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t of honest rvices, according to 18 U.S.C.S. § 1346, Congress only intended at least to reach schemes to defraud involving bribes and kickbacks”. [2] (SUPEREME COURT OF UNITED STATES, p 1) Bad on this aspect, Skilling appealed. But his claim was rejected by the Court o Appeals becau “it did not address Skilling’s argument that the honest-rvices statute, if not interpreted to exclude his actions, should be invalidated as unconstitutionally vague”. [2] (SUPEREME COURT OF UNITED STATES, p 1)
According to Justice Ginsburg’s decision, honest-rvice statue should be in part advocated in Skilling’s ca becau proscribing fraudulent deprivations of “the intangible right of honest rvices” should be at least included in bribes and kickbacks. However, Skilling did not do the fraudulence as this. Justice Ginsburg’s opinions are as follow:
We disagree with the Fifth Circuit’s honest-rvices ruling. In processing proscribing fraudulent deprivations of “the intangible right of honest rvices,” §1346, Congress intended at least to reach schemes to defraud involving bribes and kickbacks. Construing the honest-rvices statute to extend beyond that core meaning, would encounter a vagu
eness shoal. 战胜华尔街Construing the honest-rvices statute to extend beyond that core meaning, we conclude, would encounter a vagueness shoal. We therefore hold that §1346 covers only bribery and kickback schemes. Becau Skilling’s alleged misconduct entailed no bribe or kickback, it does not fall within §1346’s proscription. We therefore affirm in part advocate in part. [2] (SUPEREME COURT OF UNITED STATES, p 1)
Ethical discussion
As the Enron scandal wore on, many other companies such as WorldCom, Xerox, and Merck 创设情境collapd and became financial scandal as well. As the question mentioned at beginning, is business ethical? A survey of high school students conducted by Junior Achievement and Deloitte Touche found that only eighteen percent believe business leaders are ethical. [眷顾什么意思3] (M.Jennings, p 32) That is to say, it is time for the business field to improve their ethical level, in order to rebuild their image. However, is it necessary to do this? The answer is absolutely “yes” and the reasons are as follows:
First one is cost of unethical behavior. Companies would lo their customers if they
are not responsible. It costs corporations a huge amount of money and time to rebuild their reputation. Nestlé is probably a good example. From the 1970s to 1980s, Nestlé promoted infant formula in baby milk with misleading and harmful strategies that violated the International Code of Marketing of Breastmilk Substitutes and put babies at risk. A Nestlé boycott was launched at that time all over the world, especially in the U.S. In order to continue business, headquarter decided to recall the entire harmful baby milk in the less economically developed countries where their breast milk 最高额保证合同substitutes were sold mostly. And t up the independent Nestlé Baby Milk Product Review Committee. Through the sincere efforts, slowly, Nestlé acquired people’s confirmation, and in 1983, the United States Teachers Unions, the biggest organization in the boycott, repealed the boycott to Nestlé’s products. However, Nestlé expend huge amount of money to communicate with the public and improve their products annually during that period. The same situation in Enron, but the cost of the unethical behavior for Enron is bankruptcy. So cost is the first reason for a company to be ethical. [4] (The Internet Classics Archive. Web Baby Milk Action)
Second is impact on reputation. Reputation胰岛素怎么用 or goodwill is the determinant element of a corporation, although it ems ridiculous to some business people. A company with a high reputation can absorb more and more customers and occupied more market shares to maximize their profit. In contrast, low reputation company not only cannot maintain their current customers and market shares, but los them and even goes into bankruptcy. Becau of overrating the financial well-being, Enron’s stock was popular among stock agencies and was highly recommended as well. However, after the investigation, Enron’s share plummeted. Enron lost credit to their shareholders who sold their stocks crazily in the four months. From ninety dollars, the highest share price, to pennies per share, shareholders’ wealth shrank heavily, and some people fell. Enron’s reputation fell to zero or even negative with the falling of its stock price, although it is not reasonable to measure by numbers. In general, reputation is the most significant element of a company even the whole business. How to maintain relatively high reputation? The answer is quite simple: behave ethical.
